2016 GLOBAL CITIZENSHIP SUMMARY - citigroup.com · 2016 global citizenship summary 14. each y mison adv ilu a a euprliltacrhtrpz 2 016 g26l2g1o2boac6it2zoigoe2n 2 oshoeg6lo2ni2g1o2pu2mr6c6it2

GLOBAL CITIZENSHIP

SUMMARY

2016

Each year, we report on our global citizenship activities and performance. This document summarizes information found in our full 2016 Global Citizenship Report. The full report covers Citi’s corporate citizenship activities and performance for the calendar year 2016 and provides progress updates for key areas of our citizenship efforts across our business units and operations, focusing on the issues we determined to be of greatest importance.

We prepared our full report in accordance with the G4 Core guidelines of the Global Reporting Initiative (GRI). In addition, we used the United Nations (UN) Global Compact and UN Guiding Principles on Business and Human Rights frameworks to guide our reporting. Index tables indicating where we have addressed components for all three of these frameworks can be found at the end of the full report. Our Global Citizenship Report supplements information published in our 2016 Annual Report.

To access our full report and for more information on Citi’s citizenship initiatives and how Citi is responding to challenges around the world, please visit citi.com/citizenship or contact:

Global Public AffairsCitigroup Inc.388 Greenwich StreetNew York, NY [email protected]

ABOUT THIS REPORT

2016 GLOBAL CITIZENSHIP SUMMARY

MISSION AND VALUE PROPOSITION

OUR APPROACH TO CITIZENSHIP

HOW WE DO BUSINESS

CONDUCT, CULTURE AND GOVERNANCE

CONSUMER AND CLIENT PROTECTION

TALENT AND DIVERSITY

HUMAN RIGHTS

ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT

OPERATIONS AND SUPPLY CHAIN

SOLUTIONS FOR IMPACT

ENVIRONMENTAL FINANCE

INCLUSIVE COMMUNITIES

FINANCIAL RESILIENCE

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ABOUT THIS REPORT

Citi’s Mission and Value Proposition defines who we are as a company and guides every decision across our business. We demonstrate what we stand for through our actions and behaviors as well as the work we do with our clients in communities around the world. Everyone — from our Board of Directors to each of our nearly 220,000 employees — is responsible for upholding our mission on a daily basis.

– Michael L. Corbat Chief Executive Officer Citigroup Inc.

While we don’t have all the answers and can’t solve every problem, we can and do stand for progress and will continue to do our part to conceive of and contribute to solutions that address some of society’s most daunting challenges.”

“

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action and learn from our experience.We strive to earn and maintain the public’s trust by constantly adhering to the highest ethical standards. We ask our colleagues to ensure that their decisions pass three tests: they are in our clients’ interests, create economic value and are always systemically responsible. When we do these things well, we make a positive financial and social impact in the communities we serve and show what a global bank can do.

Our Mission and Value Proposition: Enabling Growth and ProgressCiti’s mission is to serve as a trusted partner to our clients by responsibly providing financial services that enable growth and economic progress. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients. We have 200 years of experience helping our clients meet the world’s toughest challenges and embrace its greatest opportunities. We are Citi, the global bank — an institution connecting millions of people across hundreds of countries and cities.

WHAT YOU CAN EXPECT FROM US AND WHAT WE EXPECT FROM OURSELVES

We protect people’s savings and help them make the purchases — from everyday transactions to buying a home — that improve the quality of their lives. We advise people on how to invest for future needs, such as their children’s education and their own retirement, and help them buy securities such as stocks and bonds.

We work with companies to optimize their daily operations, whether they need working capital, to make payroll or to export their goods overseas. By lending to companies large and small, we help them grow, creating jobs and real economic value at home and in communities around the world. We provide financing and support to governments at all levels, so they can build sustainable infrastructure, such as housing, transportation, schools and other vital public works.

These capabilities create an obligation to act responsibly, do everything possible to create the best outcomes and prudently manage risk. If we fall short, we will take decisive


NEARLY

220,000employees globally

MORE THAN

160countries and jurisdictions where Citi does business

APPROXIMATELY

14,000institutional client relationships

APPROXIMATELY

200 Mcustomer accounts

CITI FACTS

4

Our citizenship efforts and priorities across

the company are continuously informed by

the wider societal context around us. This

approach to citizenship issues — thinking about

Citi’s impacts on clients and customers and

society — allows us to embrace the complexity

and interconnectedness of our most material

issues. We will continue to evolve our approach

to citizenship to set ambitious goals that

our global reach — connecting millions of

people across thousands of cities in over 100

countries — can enable us to achieve.C

CITI AND THE SUSTAINABLE DEVELOPMENT GOALS

In September 2015, the 193 Member States of the United Nations adopted the new 2030 Agenda for Sustainable Development, including the Sustainable Development Goals (SDGs). This set of 17 universal goals calls on all nations to end poverty, protect the planet and ensure prosperity for all. The UN estimates that developing countries will face an annual investment gap of $2.5 trillion over the lifetime of the SDGs, making access to financing a critical factor for success.

To highlight specific ways Citi can contribute to achieving the SDGs, our full Global Citizenship Report explores several examples in which our activities are directly contributing to specific SDGs, including:

• Affordable&CleanEnergy(Goal#7)

• DecentWork&EconomicGrowth(Goal#8)

• Industry,Innovation&Infrastructure(Goal#9)

• SustainableCities&Communities(Goal#11)

• ClimateAction(Goal#13)

• PartnershipsfortheGoals(Goal#17)

To learn more about how Citi is contributing to the SDGs, download our full report atciti.com/citizenship.

OUR APPROACHTO CITIZENSHIP

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HOW WE DO BUSINESS

2016 CITI GLOBAL CITIZENSHIP SUMMARY

66

Responsible business practices are not only the backbone of our company’s success, they are also imperative to protecting the broader financial system and the communities in which we live and work. It starts with a culture of ethics and integrity delivered by a diverse, skilled workforce committed to serving our clients. Whether we are protecting our customers’ privacy, respecting human rights, engaging with our suppliersor assessing and addressing the environmental and social risks of the projects we finance, our goal is always to earn our customers’ trust through responsible, ethical activities.

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Earning and maintaining public trust is core to our

Mission and Value Proposition, as well as a crucial

requirement for the success of our business. Adhering

to the highest ethical standards takes constant effort,

and we continuously work to build a culture of ethics

that employees are eager to embrace. We make managing

compliance risk the responsibility of all our employees.

It requires not only adherence to applicable laws,

regulations, policies and relevant standards of conduct,

but also the promotion of business behavior and activity

that is consistent with our mission.

CONDUCT, CULTURE AND GOVERNANCE


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More than

20,000employees completed in-person

and virtual LEADERSHIP MATTERS: IT STARTS WITH US training

Implemented our CONDUCT RISK PROGRAM

across multiple businesses in approximately

44 COUNTRIESMore than

197,000employees have completed

ANTI-MONEY LAUNDERING, SANCTIONS AND ANTI-BRIBERY

AND CORRUPTION training

2016 HIGHLIGHTS

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Safeguarding assets and conducting business responsibly are key

tenets of our mission. We use technology to increase accessibility

and convenience for our customers, but without compromising

security. In today’s digital world, data security and privacy are top

priorities. We must take a proactive and robust approach in an

effort to stay ahead of ever-increasing threats. We have stringent

policies, robust technologies and a strong team in place to protect

our data and systems. All our efforts rest on our assurance to

our customers that we aim to deliver products and services that

provide value, clarity and dependability.

1 “Cyber Crime Costs Projected to Reach $2 Trillion by 2019,” Forbes, January 2016.

CONSUMER AND CLIENT PROTECTION


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More than

119,000 employees globally completed

annual training on TREATING CUSTOMERS FAIRLY

EXPANDED

BIOMETRIC AUTHENTICATION across various Citi products, and

implemented voice biometric authentication in customer service

centers in multiple countries

“ETHICAL HACKERS“ PROTECTING OUR CLIENTS

Some estimates indicate that data

breaches could cost businesses

more than $2 trillion globally by

20191 and cyber criminals don’t limit

their attacks to large institutions

such as Citi — they can also target

individuals. We work proactively

behind the scenes to protect our

clients from the ever-increasing

and complex threat of cyber crime.

Since 2001, we have had a small

team of specialists testing Citi’s

electronic safety and safeguards.

That team has now grown to 100

full-time “ethical hackers” who

view Citi’s offerings from the

perspective of cyber attackers,

identify security holes that need to

be plugged and stay current on the

cutting edge of technology. This

team’s focus has evolved beyond

protecting against current attacks

to also proactively guard against

future ones by evaluating new

products and services to ensure

that they are as safe and secure as

possible before being rolled out.

CASE STUDY

2016 HIGHLIGHTS

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TALENT AND DIVERSITY


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More than

54,000employees participated in the pilot phase of the

“BUILDING AN INCLUSIVE CULTURE” training on unconscious bias

17,000employees used formal

FLEXIBLE WORK ARRANGEMENTS

The Diversity Index, which measures FOUR KEY METRICS OF DIVERSITY

in the workplace as part of our annual VOE survey, continues at

81% FAVORABILITY

At Citi, diversity and developing our

talent are business imperatives. Our

success rests on our ability to create

an environment that supports the

personal and professional growth

of our employees, where they can be

themselves. We are a global company

and welcome people of every cultural

background, gender, race/ethnicity,

generation, sexual orientation, and

gender identity or expression, as

well as military veterans and people

with disabilities. We aim to ensure

that our working environment fosters

opportunities for growth for our

employees, through exposure to our

global businesses and products and

by continually enhancing the programs

and resources available to them to

support their career. We strive to treat

all employees fairly and with respect

and hold them accountable for

maintaining our standards of excellence.

2016 HIGHLIGHTS

EXPANDED BENEFITS

We recently enhanced our parenting

leave Policy in the U.S. and Puerto

Rico for employees who have been

with Citi for at least one year. As

of January 1, 2017, Paid Pregnancy

Leave is extended from 13 to 16

weeks for employees who are the

birth mother. For all other parents,

Paid Parental Leave is extended from

two to eight weeks in connection

with the birth or adoption of a child.

CASE STUDY

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Because of our global reach and scale,

the human rights standards we set

for ourselves — and for those with

whom we work — can have a profound

impact in the world. Our respect for

human rights is not only evident in our

employee protections and supplier

guidance, but also directly informs

our business decisions, including what

we choose to finance. We proactively

conduct risk analysis, due diligence

and stakeholder engagement activities

to ensure human rights considerations

are always taken into account. We

are also working to evolve our risk

analysis tools to identify sectors and

geographies within our client base that

pose an elevated human rights risk.

HUMAN RIGHTS


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JOINEDSHIFT’S BUSINESS

LEARNING PROGRAM

Shift is the leading center of expertise on the UN Guiding Principles on Business and

Human Rights

SCORED

100% on the Human Rights

Campaign’s Corporate Equality

Index annually since 2004

PREVENTING HUMAN TRAFFICKING

Following the flow of funds from

human trafficking is no easy task;

it’s like looking for a needle in

a haystack. But we began on a

year-long journey of testing what

we knew and what we didn’t and

inputting massive amounts of data.

In the end, we built an algorithm to

identify potential patterns of behavior

related to human trafficking.”

– A lead statistical data miner,

Data Intelligence Unit, Citi

The Data Intelligence Unit is a

specialized group within our Anti-

Money Laundering team that seeks

to understand connections and

associations related to the movement

of money within Citi to prevent fraud

and money laundering. To report and

deter the illegal movement of money

related to these crimes, the team

worked with law enforcement and Citi

investigators to develop a highly

effective algorithm to systematically

identify potential human traffickers.

The team is leveraging their patent-

pending methods to further advance

detection by applying advanced data

science techniques to detect human

trafficking networks — potentially

giving the algorithms a global range.

“

2016 HIGHLIGHTS CASE STUDY

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REDUCED OUR CREDIT EXPOSURE to coal through the first full

year of implementation of our

COAL MINING STANDARD

Addressed fire prevention practices of

PALM OIL CLIENTS to assess alignment with industry

best practice by updating our

DUE DILIGENCE QUESTIONNAIRES

Piloted an ESRM Watchlist

process to provide an

EARLY WARNING SYSTEM

on clients and transactions that may pose heightened

ENVIRONMENTAL, SOCIAL OR REPUTATIONAL RISK

2016 HIGHLIGHTSCiti lends billions of dollars of capital

to a wide variety of companies and

projects, many of which have potential

environmental and social impacts. We

take a comprehensive approach to risk

analysis, evaluating potential impacts at

the transaction level as well as monitoring

clients and projects that fall within high-

risk sectors, such as forestry, palm oil and

coal mining. Where there are gaps, we

work to clarify project details and engage

with clients to manage environmental and

social risks. In addition, our Environmental

and Social Risk Radar Report helps us

proactively scan for emerging risks.

ENVIRONMENTALAND SOCIAL RISK MANAGEMENT


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Citi is one of the 17 banks that

financed the Dakota Access Pipeline

(DAPL) project — an underground

oil pipeline in the U.S. from North

Dakota to Illinois. Construction of the

pipeline raised concerns and spurred

protests by Indigenous Peoples and

environmentalists as well as many

others who were concerned about

the project and its potential impact.

Citi recognizes the importance of the

issues they have raised and will learn

from this experience to improve our

approach to due diligence on social

risk, including on issues related to

Indigenous Peoples.

When first approached to work on

this project, Citi conducted careful

due diligence under our ESRM Policy

and the Equator Principles, including

closely reviewing the Environmental

Assessment report. The banks engaged

an independent consultant to review

the permitting and approval process

to confirm compliance with U.S. laws

and regulations. Following this review,

we determined that the project met our

ESRM Policy and the Equator Principles.

As the objections of the tribal and

other stakeholder communities to

the project escalated, Citi realized

the need to directly engage with

the Standing Rock Sioux Tribe, as

well as a number of stakeholders

from the human rights, academic,

investor and non-governmental

organization communities, to better

understand their concerns. We greatly

appreciated the constructive nature

of those discussions and used what

we learned from them to engage with

the project sponsors, expressing our

concerns and advocating for steps toward

a peaceful resolution. Citi, together

with TD bank and on behalf of the other

banks, spearheaded the engagement

of an independent human rights expert,

Foley Hoag LLP, to review the U.S. legal

requirements for consultation with

Indigenous Peoples, and the project

sponsors’ policies and procedures in

the areas of community consultation,

cultural heritage assessment, and

security. The review resulted in

recommended improvements that

project sponsors can make to these

policies and procedures in line with

international best practice.

Citi took away a number of key

learnings from our involvement in

this project that will impact how we

evaluate such work in the future.

Specifically, the current approach to

consulting Indigenous Peoples in the

U.S. does not align with international

standards, and the policies that

we have used to evaluate those

consultations during due diligence

are not sufficient. Accordingly, we are

working with a third-party consultancy

specializing in community engagement

— Monkey Forest Consulting — to

advise us in strengthening our internal

due diligence in this area this year. We

also intend to continue to maintain a

direct dialogue with members of the

Standing Rock Sioux Tribe community

and other relevant stakeholders on a

regular basis going forward.

ADDRESSING STAKEHOLDER CONCERNS: DAKOTA ACCESS PIPELINE

CASE STUDY

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Nearly

2,400suppliers have completed our

CORPORATE RESPONSIBILITY QUESTIONNAIRE since it

was established in 2013

REDUCED ABSOLUTE GHG EMISSIONS BY

28% towards our 2020 goal

Expanded our LEED-CERTIFIED real estate portfolio to

20%

OPERATIONS AND SUPPLY CHAINWith 12,000 owned and leased facilities and

thousands of suppliers worldwide, we have

a responsibility to minimize any negative

environmental or social impacts of our

operations. In 2016, we made positive

gains toward our 2020 goals for carbon

emissions, energy and water use and

waste diversion. We also expanded our

focus on the emerging field of sustainable

building design as it pertains to the well-

being of our employees.

In our supply chain, we seek out suppliers

who share our values and standards. We

continue to gather information on the ways

our suppliers are responding to a range of

citizenship and environmental sustainability

issues, and we are expanding our supplier

diversity efforts outside the U.S.

2016 HIGHLIGHTS


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CASE STUDY

WORKING WELL

Our Citi Tower in Hong Kong is a

significant milestone in our pursuit

to operate facilities that live up to

high environmental standards and

also provide employees with

workplaces that support their

well-being. The building has

been awarded LEED Platinum

Certification, which contributes

to our goal of 33 percent of our

portfolio being LEED certified by

2020. Citi Tower’s environmentally

sustainable features include solar

control glass to help reduce the

use of energy for air conditioning,

efficient lighting and lighting

controls and low-VOC paints and

adhesives. Citi Tower is also the

first Citi project approved for

WELL Silver Precertification by

the International WELL Building

Institute™. The WELL Standard

— which is separate from yet

highly complementary to LEED

certification — assesses buildings

for features related to health and

wellbeing. The Tower includes

many wellness-related benefits for

the over 3,000 Citi employees who

work at the facility, from water-

and air-quality testing to a fitness

center and workstations with

ergonomic features.

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SOLUTIONS FOR IMPACT

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As one of the world’s leading financial service companies, Citi is well positioned to help address complex societal challenges, such as rising wealth inequality, rapid urbanization and climate change. Whether it is providing capital for large infrastructure projects or lending to a small business owner, we see these activities as potential solutions to global issues that matter to our clients and impact our communities. There is still much work to be done, but we believe that by addressing the challenges of today, we can find greater opportunities for tomorrow.

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ENVIRONMENTALFINANCE


The effects of climate change present both enormous opportunities and challenges to our clients’ businesses today. New financial solutions are needed for the energy, infrastructure and technology projects enabling progress toward a more sustainable economy. In 2015, we announced our $100 Billion Environmental Finance Goal. Our progress toward this goal continues at a robust pace. In the first two years since announcing our commitment, we recorded our highest annual volumes of sustainable finance activity, with $26.3 billion in transactions

in 2016 and $47.6 billion in 2015.

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FINANCED & FACILITATED

$26.3 Bas part of our $100 Billion

Environmental Finance Goal

Facilitated

$5.9 BIN GREEN BONDS

for environmentally responsible projects

Financed

FIRST-OF-ITS-KIND PROJECTS like the Block Island Wind

Farm Project, the first

OFFSHORE WIND FARM

in the U.S.

BRINGING OFFSHORE WIND POWER TO THE U.S.

In October 2016, Citi provided

financing for the construction and

operation of Deepwater Wind’s

Block Island Wind Farm, the first-

ever U.S. offshore wind farm.

Citi participated in the construction

loan and provided tax equity

financing along with GE. Block

Island is a 30-megawatt wind farm,

which utilizes five GE turbines

and is located three miles off the

coast of Block Island, Rhode Island.

Each wind turbine is 600 feet

(180 meters) high and can withstand

a Category 3 storm.

This is a landmark transaction in

U.S. renewable power history, and

representative of the continuing

growth of renewable energy

development. The offshore

installation took two years,

with more than 300 local

workers helping to develop, build

and commission the project,

according to Deepwater Wind. An

independent report by the local

Block Island government indicates

that the Block Island Wind Farm

will lower carbon dioxide emissions

by 40,000 tons each year and is

expected to save Block Islanders as

much as 40 percent on energy bills.

The wind farm has executed a

20-year Power Purchase Agreement

with the Narragansett Electric

Company and started delivering

power in December 2016.

CASE STUDY 2016 HIGHLIGHTS

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Cities today are facing a range of

challenges — from income inequality to

infrastructure pressure — that demand

big solutions. Through our core business

and philanthropic activities, we work with

community partners, policymakers and

leading thinkers to find viable approaches

and scale impact. In cities around the

globe, we focus on addressing challenges

such as affordable housing, employment,

entrepreneurship, access to city services

and financing for sustainable urban

growth projects. Our approach goes much

deeper than simply financing projects —

we partner to develop ideas that drive

progress and strengthen communities.

INCLUSIVECOMMUNITIES


Citi’s sponsorship of our bike-

sharing program began in New

York City, but has since expanded

to several cities across the U.S.,

helping more urban dwellers

decrease their carbon footprints and

expand their transportation options.

NEW YORK CITY

Launched: May 2013

Trips Since Launch: 38 million

Miles Traveled: 80 million

MIAMI

Launched: December 2014

Trips Since Launch: 2.9 million

Miles Traveled: 8.6 million

JERSEY CITY

Launched: September 2015

Trips Since Launch: 285,000

Miles Traveled: 427,000

Stats through December 2016

CITI BIKE

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Launched the

CITI FOUNDATION COMMUNITY PROGRESS MAKERS FUND,

a two-year,

$20 Minitiative to support local

organizations working to build more sustainable cities in the U.S.

RANKED TOP U.S. AFFORDABLE HOUSING LENDER

FOR THE 7TH YEAR Financed

$5.75 B of affordable housing, totaling

nearly 50,000 units

INCREASED SMALL BUSINESS LENDING in the U.S. to more than

$11 B, raising lending over the last five

years to nearly $50 Billion

POWERING SOUTH AFRICA

While access to power across

South Africa is fairly wide-spread,

the reliability of the power is often

tenuous. In addition, access is fairly

limited in surrounding nations. Citi,

in partnership with the African

Development Bank and various

commercial lenders, arranged for

financing to Eskom, South Africa’s

power utility and primary supplier

of electricity, to improve and

expand its energy transmission

network. Financing will ultimately

allow Eskom to further develop its

electricity generation capabilities

in South Africa and across

the sub-Saharan region, thus

increasing industrialization and

job creation as well as energy

reliability and overall quality of

life for people in those areas. This

project is a part of the New Deal on

Energy for Africa, which aims to

achieve universal access to energy

in Africa by 2025.

CASE STUDY

2016 HIGHLIGHTS

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Thriving economies are built on financial stability at the

individual level. But many around the world lack access

to the resources and tools to build a strong financial

foundation. We seek to create opportunities for people

to earn an income and to access high-quality, affordable

financial products and services to protect and grow their

savings. Through technology, partnerships, engaged Citi

volunteers and funding from Citi and the Citi Foundation,

we support youth education, training and financial

capability programs that help people become more

economically resilient.

FINANCIAL RESILIENCE


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Launched CITIBANAMEX FINANCIAL INCLUSION, a unit dedicated to broadening

access to affordable and appropriate financial products in

Mexico, as part of our new

$1Binvestment in Citibanamex

Piloted the Citi ATM Community

Network, providing FREE USE

OF CITI’S ATM NETWORK to over

300,000 CLIENTS of participating minority-owned

banks and credit unions in the U.S.

Met our Citi Foundation Pathways To Progress goal to invest

$50 M AND REACH 100,000 YOUTH

with training, leadership and entrepreneurship opportunities

PATHWAYS TO PROGRESS

Pathways to Progress set a

foundation of skills I needed to

succeed in my career. The rest was

me just jumping into things and

trying them out. That hands-on

experience was key to finding out

what was right for me. I’ve grown

so much as a person in the last six

months.”

– BEN TYSON, Youth Radio,

Youth Opportunity Fund Grantee

The Youth Opportunity Fund is a

competitive grant program,

designed to support innovative,

city-level initiatives that prepare

young people for today’s competi-

tive job market.

“

CASE STUDY2016 HIGHLIGHTS

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CitigroupInc.388GreenwichStreetNewYork,NY10013citi.com/citizenship

Documents

2016 GLOBAL CITIZENSHIP SUMMARY - citigroup.com · 2016 global citizenship summary 14. each y mison adv ilu a a euprliltacrhtrpz 2 016 g26l2g1o2boac6it2zoigoe2n 2 oshoeg6lo2ni2g1o2pu2mr6c6it2